PCP and part exchange bikes.

[mrtee43]

Just thinking a bit about future bike purchases.

How does a PCP deal work if you want to go down that route for a new GS LC and you have a GS LC which is owned outright, which you want to trade in ?

Example. My bike is a GS TE Sept 2013, 19000 miles.

 

[twizzle]

I discussed this with a dealer recently... My trade in was offered at £4k, they wanted to keep £2k as the deposit and were offering a bank transfer of £2k back to me...

 

[Nutty]

I discussed this with a dealer recently... My trade in was offered at £4k, they wanted to keep £2k as the deposit and were offering a bank transfer of £2k back to me...

Wow, that KTM really has taken a depreciation hit!

 

[twizzle]

Wow, that KTM really has taken a depreciation hit!

Ah ha... It wasn't the KTM......

 

[Pansmiker]

Just thinking a bit about future bike purchases.

How does a PCP deal work if you want to go down that route for a new GS LC and you have a GS LC which is owned outright, which you want to trade in ?

Example. My bike is a GS TE Sept 2013, 19000 miles.

As Twizzle says....do your deal / negotiations on the bike and strike your trade in value. Say for talk sake, the dealer is giving you £8k for your bike. It is up to you to then decide what monthly payment you are happy with for your expected annual mileage. The monthly payment is influenced by the amount of the Guaranteed Future Value, the rate of interest and the amount of deposit you put in to the deal. There will probably be a maximum permissible deposit of something like 40% of the purchase price. If you go for the full amount of permissible deposit and the bike was, say, £16k then the max deposit would be £6,400 which in this scenario would leave you being given £1,600 (partex £8k - dep £6,400) back by the dealer.

 

[Zx9man]

But don't be surprised when you decide to change it that you will be asked to pay a lump sum

 

[B11RGER]

Its also worth looking at getting a personal loan from Tesco, M&S, Sainsbury's all offering approx 3.3% for loans over £7,500. I think PCP is and expensive way to get a bike. there is usually a mileage charge over the agreed yearly miles you accept at the begining of the contract. your trade in value should be worth the same whether you do your own finance or a PCP. To the dealer it is still a sale.

 

[sagalout]

The dealer makes commission on their finance though, so will often give you a better deal or extras thrown in - of course it depends the rates as to which is the best overall deal

 

[BeemerBaz]

I'm looking at a similar scenario. Trading in a 62 plate K1600GT for a new GSA TE. For similar reasons the Select finance deal is ideal for me and my circumstances. The crucial factor is how much they offer me for my bike. The dealer is currently selling one for £11000 but has 10000 fewer miles and a radio. Mine has a top case theirs doesn't so assuming they would advertise mine for sale for £9500 then ideally I would like to get between £7500-£8000.

What this space and see if Mr Balderston agrees with me tomorrow.

 

[theop]

My view is that dealers bids are more lenient on post pcp bikes, one because the residuals post PCP are less hence once their basis is tight (say 2-3k in favour of the owner) their spread will have to be tighter than when say they have 8-10k residual to play with. And two, because a pcp deal ending usually leads to another PCP, I.e. Two three more years of income and a secure customer at the end of it.

From the few bikes I ve owned fully I have always felt the dealer bid has been well below 80% of the value one could achieve privately on autotrader.

Moreover, as I have stated elsewhere to a fair bit of argument from others, when one adds in the reliability nightmares of Bmw s of late, PCP I feel is my only way. Saves some capital for other stuff and also all the hassle "it's broken, it isn't". When unhappy or bored I just hand it back.

 

[mcinlb]

There's a good article in Octobers MSL mag "Cash isn't always king" worth a read if buying a new bike .

 

[mrtee43]

There's a good article in Octobers MSL mag "Cash isn't always king" worth a read if buying a new bike .

Article here.
http://www.mslmagazine.co.uk/the-best-way-to-pay-for-your-next-car-or-motorcycle/

 

[mrtee43]

Same mag but another separate article on PCP.


http://www.mslmagazine.co.uk/pcp-explained-how-to-buy-a-new-motorcycle/

 

[BeemerBaz]

Same mag but another separate article on PCP.


http://www.mslmagazine.co.uk/pcp-explained-how-to-buy-a-new-motorcycle/

Good article, thanks for sharing

Deal done for my new GSA TE, dealer just got to find me one now !!

 

[mrtee43]

Good article, thanks for sharing

Deal done for my new GSA TE, dealer just got to find me one now !!

What deal did you get or is this being too cheeky ?

 

[BeemerBaz]

What deal did you get or is this being too cheeky ?

Went down the PCP route, offered £7500 px for my 62 plate K16GT. Included side/top cases in the deal which I paid for of course, £4500 deposit on new bike £2000 cash back to me. PCP at £96 a month over £48 months but as I was paying £35 a month on extended warranty for my K16 I am technically riding away on a new bike for £60 a month, suits me and my circumstances and was surprised how many new bikes are bought this way, dealer stated well over 60%

 

[Davey B]

offered £7500 px for my 62 plate K16GT. Included side/top cases in the deal which I paid for of course, £4500 deposit on new bike £2000 cash back to me

I presume there's a typo somewhere there....as those figures don't add up...i.e £4.5k deposit plus £2k back to you is £1k short of £7.5k

 

[Duraace]

Went down the PCP route, offered £7500 px for my 62 plate K16GT. Included side/top cases in the deal which I paid for of course, £4500 deposit on new bike £2000 cash back to me. PCP at £96 a month over £48 months but as I was paying £35 a month on extended warranty for my K16 I am technically riding away on a new bike for £60 a month, suits me and my circumstances and was surprised how many new bikes are bought this way, dealer stated well over 60%

Hard judge how good the deal is without the rest of the figures...

Final payment? APR%?

Interested as I'm shopping for a TE right now but struggling to find out what a "good deal" actually is!

 

[BeemerBaz]

I presume there's a typo somewhere there....as those figures don't add up...i.e £4.5k deposit plus £2k back to you is £1k short of £7.5k

The other £1k went on a full set of ali luggage

 

[BeemerBaz]

Hard judge how good the deal is without the rest of the figures...

Final payment? APR%?

Interested as I'm shopping for a TE right now but struggling to find out what a "good deal" actually is!

Apr is 3.9%

Final payment depends on a few factors including term length , your deposit etc. I haven't got exact figures in front of me but at 3.9% it's very competitive.

3 options at end of term.

Pay off balance and own the bike

Trade bike in and do the same again

Hand bike back and walk away.

I was surprised how many new bikes are actually bought this way.

Someone posted a link yesterday to PCP details which is well worth a read.